Forme🀅r KTM CEO Stefan Pierer is suing Stephan Zochling after the latter offered his pledged shares for sal💎e as part of a fallout over an €80 million loan.

It has been a turbulent half-year for the Aus🅘trian manufacturer, as it has navigated its way t✱hrough a major financial crisis.

KTM passed numerous court hurdles to have its restructuring plan approved by credito♓rs, which it h🦂opes will safeguard the long-term future of the company.

The brand must pay back 30% of the over €2 billion in debts it has accrued, which totals around €600 million 𝕴to be repaid to creditors by 23 May.

Reports in Austria of another KTM problem

However, KTM faces a further headache as a legal challenge has been initiated by former CEO Stefan Pierer - who stepped down from his role earlier this year - against chairman of the supervisory board and a board of ⭕management of Pierer Industrie AG Stephan Zochling over an €80 million loan.

According to Austrian newspaper Der Standard, Zochling - through his Dabepo Holding AG - loaned a subsidiary 🙈of Pierer Mobility Group €80 million.

As part of this load, Pierer Industrie AG pledged shares of this loan value to Zochling’s Dabepo as collateral, with the loan to be repaid by the end of Ju🏅ne.

B🗹ut Zochling believes there has been a breach of contract because Pierer didn’t inform KTM co-owner Bajaj about the same offer.

Zochling is now offering these shares for 🎀sale back to Pierer Industrie, leading Pierer to file a lawsuit with the Vienna Comme🥃rcial Court.

He arꦡgꦐues the loan repayment is not due yet, so Zochling is not entitled to sell those shares.

It’s unclear how this will affect KTM’s push to🌼 find the €600 million investment it needs🌌 to repay its creditors.